The big 5 4 Accounting firms

True but amazing facts about them, not known to

Known as the big 4 Accounting firms, they are :
•KPMG •Pricewaterhouse Coopers •Delloite •Ernst & Young (Arthur Anderson which made it the big 5 is now in archives)

Of course they set the global standards for transparency in business. But who is their owner ? Shhhhh……. It is wellguarded secret.

120 countries, for obvious reasons each one of them is head quartered in a Tax Haven.
If you enquire any details about these firms in a tax haven like Panama, you may end up spending the next 2 years in jail.

Understand how secret the

dollars as fines in the US alone to the SEC. In UK they are being subject to investigations under the Fair Trade Practices Act. They are the subject of cartoons in the Western press and lampooned by the

Their credentials include *
Please refer to our White Paper on the Big 4 Accounting Firms for complete details. This will be released shortly
*

In case of PWC
Clients
Micro Strategy Home State Holding Robert Maxwell BCCI Anicom

Fine Paid
55 Mn USD 100 Mn USD 1.2 Mn GBP Undecided 21.5 Mn USD

Source
US News www.insure.com ANP Ltd. ANP Ltd. ET WSJ

Accused of compromising on 2.5 Mn USD independence in 70 Companies

In case of KPMG
Clients Power screen Xerox Pie Mutual Rite Aid Oxford Health Jinzhou Port company Fine Paid 275,000 GBP Undecided 9.9 Mn USD 125 Mn USD 75 Mn USD Undecided Source BBC News Reuters, SEC www.insure.com Accounting Web Accounting Web Accounting Web

In case of E&Y
Clients
Cendant FDIC AOL Time Warner Savings & Loans BAAN CO Bank of Cantonale Peoplesoft Case

Fine Paid
335 Mn USD 548 Mn USD Undecided 400 Mn USD 400,000 USD 2.2 Bn USD Undecided

Source
AP & NYLJ Accountanyage.com Washington post & Accounting Web LA Times SEC Accounting Web NY Times

In case of Delloite
Clients Adelphia Barrings Royal Ahold Kentucky Life New Tel Fine Paid Undecided Undecided Undecided 23 Mn USD Undecided Source Business Line Observer Accounting Web Accounting Web Accounting web

They have been found to be innovative in
•Booking bogus sales •Capitalising revenue expenses •Insider trading & related unethical practices •Not accounting Sales Returns •Inadequate disclosure of off-Balance sheet items •Assisting the management in asset stripping •Failing to record liabilities or suppress liabilities

Well, the list on their accounting “innovation” could go on…That is if you do not reckon shredding of documents

It is these ‘credible’ professional outfits that are in India, advising the Government of India on:
• Speed and directions of Reforms • Advisor to the planning commission • Providing expertise to the Disinvestment process • Privatisation & Globalisation • Policies for inviting FDI

So, if you want to innovate your accounts hire these “experts”, They would do a good job for you and of course make a fortune in the bargain.

manager, you may have personally felt bombarded, sullied, trampled over, bullied and even decried at your own office by representatives of the big 4. Simply because they are Remember, they charge you and from the big 4.

you pay

even for the time spent on abusing you!

might have noticed subtle hints to influence your decisions. Hiring the kith and kin of the decision makers is one of their tried and trusted methods They are experts in the art of making friends and “influencing” people.

Their ownership is unknown, their competency is suspect & their advice bogus.

Then, why do the financial institutions, banks and the corporates in India keep them as auditors, advisors or consultants?

Why are they allowed to operate in India, and hired and respected by the Government of India?

WHY?

Simply because are not aware about these firms and therefore you are silent. Now that you know, will you do something? Will you forward this mail to everybody you know?

YOU

Save yourself and the nation from the Big 4!
Prepared in Public Interest by The Chartered Accountants’ Action Committee, Chennai IV floor, Rosy Towers 8, Nungambakkam High Road Chennai 600034 Phone- 044-28272201

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